If you use high leverage stop loss is a must however the rule of thumb is that it has to reflect % of capital you can afford to risk per trade. If you set 1% then using pip value of your trade your can calculate to size of stop loss. Or using the size of stop loss you can instead calculate position size. Basically there are only two approaches to determine risk - signal-based or based on the amount of money you can afford to lose.
- | Joined Feb 2011 | Status: Member | 88 Posts
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